Economic Depression

An economic depression is a prolonged period of significant decline in economic activity across various sectors of the economy. It is characterized by sustained high unemployment, a drop in consumer spending, falling Asset prices, and a general decrease in production and trade. Economic depressions are more severe and last longer than recessions, often leading to widespread financial hardship.

Examples of economic depressions include:

• The Great Depression (1929-1939): Initiated by the Stock market crash in 1929, it led to unprecedented unemployment rates and global economic downturn.
• The Long Depression (1873-1896): Triggered by the collapse of the Vienna Stock Exchange, it affected economies worldwide, causing a severe contraction in trade and industry.

Cases of economic depression often require significant government intervention, such as fiscal stimulus and monetary policy adjustments, to revive the economy.